Kansas Foreclosure Laws

Kansas Foreclosure Law

Some states in the US allow foreclosure on distressed property using only the judicial process. According to Kansas foreclosure laws, Kansas is one such state that insists on the filing of a lawsuit for the lender to obtain a foreclosure order from the court. Once the court is in receipt of all the claims a judgment is given. The judgment specifies the balance to be paid by the borrower to the lender. The court directs the county sheriff to dispose off the distressed property in a specified manner. This foreclosure process takes close to four months to complete.

Mandatory Newspaper Notice of Sale According to Kansas Foreclosure Laws

The primary security instrument that is relevant in a foreclosure process in Kansas is the mortgage. Kansas foreclosure laws states that the county newspapers should carry the notice for sale of foreclosure property for at least three weeks before the actual foreclosure sale. The last publication of the notice be at least one week before the foreclosure sale. The law also states that the borrower should be served with the notice within five days of its being published publicly.

The sale of foreclosures in Kansas State is generally held at the courthouse itself. The judge is however empowered to decide upon an alternate venue for the foreclosure sale. The method adopted for the sale is public auction and the property is sold to the highest bidder as in any other auction. As soon as the highest bid is finalized the sheriff issues a certificate of purchase of foreclosure property to the buyer. This certificate acts as the proof of the buyer's claim over the property till the borrower's redemption rights expire.

The Importance of the Court

The court plays an important part in a foreclosure property sale in Kansas. Under certain circumstances the court may refuse to honor the sale. The court can also enforce a minimum bid to preempt the property being undervalued. The court may even credit the market value of the property against the loan outstanding. Once the foreclosure sale is finalized the court issues a sheriff's deed. The sheriff's deed is an important document that vests ownership of the foreclosure property in the buyer. The court may make this ownership conditional to redemption by the borrower.

Once a foreclosure judgment has been passed it can stay un-enforced for a period of five years. However once this period is exceeded the judgment is declared dormant. The petitioners are given a chance to revive it over a period of two years. If even this period elapses without any action being taken then the court records list the judgment as being unenforceable.

The lender has an option to file for a deficiency judgment in case the proceeds from the foreclosure property sale are less than the outstanding amount due to him. This state of affairs can be avoided if the court uses its powers of fixing a minimum price and refusing a sale that does not fulfill this condition.

Kansas State Foreclosure Law allows borrowers a grace period of twelve months for redemption of foreclosure property. If the borrower takes this option he is required to pay the person who bought the foreclosure property, an amount specified by the court. This amount includes the purchase price, legal costs borne and interest. Several other guidelines are laid down for redemption of the foreclosure property by the borrower.